When you are in a meeting or conducting a session on the phone with a prospective client, one of the key questions to ask is – what is it worth to you to solve this problem? And you simply shut up and listen to their answer. Let me explain.
Imagine a plumbing business, who have an existing website. They have invested a lot in the development of the site but enquiries that actually lead to sales are negligible if not non-existent. What they are looking for is leads as leads are the pathway to more sales.
They engage a web analytics specialist who helps to make under performing websites profitable by analysing the statistics of visitors to the site, what they searched for and how individual pages are performing etc.
One month later, the site is fully optimized for search engines and the business receives ten enquiries which leads to £1,000.00 in sales. In the 2nd month, with a few more changes in the functionality of the site, enquires have increased to 15 and sales are now £1,500.00. This is already proving to be a good ROI for the plumbing business. A content package is later implemented which helps them them to blog and do other things. Every month the enquiries increase as do the conversions.
Fast forward 12 months and the plumbing business has generated an extra £25,000 in sales from their online channel and this is from a standing start of zero. If you know your service can give this business or any other business £25,000 worth of leads, what does that do to your conviction about how valuable your service is and how to price it.
If you can assess how much your service is worth over the course of one month, 2 months or a year and be able to prove by the results that you can show the difference you can make either to their bottom line or in some other respect, then pricing is academic. Quite often business owners can be too caught up in what needs to be done as opposed to the difference you make.
But how do you get to the place of believing and knowing your service is worth over £25,000 in the course of a year.
Here is how I would suggest you can get clients to understand what your services can be worth to them:
- Do some research to find out what it was worth to previous client’s. Look at your case studies, testimonials, talk to suppliers, peers and colleagues to learn about the impact you have had on their business/life and what is really valuable about your service.
- Look at the data – have they won any new business? Are they slimmer, happier, fitter, much more confident about the future of their business?
- When you have found out the value – look at what is unique about your service; what makes you stand out from the crowd.
- Ask the client – what is it worth to you to have this solved? Listen closely to this answer as it will tell you everything that is important to them.
Collating this information can take a while but it will be worth it. Confidence in your pricing and in your own value comes in knowing the value of the results you can generate and if you can show evidence of clear results achieved, what do you think that information would be worth to them?
When putting proposals together or prospecting, look at your service offering over the long haul, not just with completing the task or project but what the impact would be long after you are gone. How much revenue would they be able to generate now that they know how to complete proposals or tenders. The team is much more productive, relationships are much improved. The more you can quantify the value and confidently state if you paid me xxx, it would be worth xxx to you in return; and have the evidence to prove it, the easier the sale is going to be.
If you want some help with talking over the kind of questions you would like to ask, or creating packages for your services, I’d be delighted to arrange a free Value Strategy Session (normally £400) where we would spend 90 minutes together discussing how you can really understand your value and develop value based strategies for your business. To arrange your Value Strategy Session email us on firstname.lastname@example.org